If you live near a Starbucks and you're planning to sell your home, then you're in luck. All over the United States of America, houses within a quarter-mile proximity have gotten upsold by almost 45 percentage points. Reports say that properties near a branch have increased value by 96 percent compared to 65 percent in all homes across the continent.
Not all coffee shops create the same effect, however. Dunkin Doughnuts reportedly comes close, but not as high as Starbucks in terms of appreciation.
Julie Lerch of Chicago shared to Zillow that "when a Starbucks moved into her neighborhood a year after she did, she was able to sell 3 years later and rake in 53 percent more than she paid. She attributes this to the sudden appearance of the coffee giant." This jump in price may also be connected to neighborhood's gentrification.
Many have called this the "Starbucks Effect." Although it's not exactly because of the coffee shop that's why prices are going up, the coffee chain has the ability to know which neighborhoods are up and coming or are on the rise.
Quartz came up with an in-depth report about this and backs up the claim that Starbucks really has a good eye when it comes to choosing neighborhoods on where they are going to set up shop next. I the report, it was said that the coffee giant is merely the "fuel and not the follower."
Choosing locations is reportedly an art and a science. The report from Quartz says, "The Starbucks team explained that while they have 20 or so analytics experts around the world poring over maps and geographic information systems data -- assessing factors like an area's traffic patterns and businesses -- the company also empowers dozens of regional teams to come to their own conclusions about location, store design, and a host of other issues."
Looks like Starbucks is indeed doing its part in their communities!
